Bitcoin fell from $81K to $77K following Fed Chair Warsh's hawkish Jackson Hole speech signaling potential rate hikes and reaffirming the Fed's 2% inflation target.
Macro & Markets ·
Bitcoin fell from above $81,000 to below $77,000 within hours after Fed Chair Kevin Warsh delivered hawkish remarks at Jackson Hole, emphasizing that inflation remains elevated above the Fed's 2% target and signaling the central bank has "work to do." Market pricing of September rate-hike odds jumped to 60% following the speech from a prior one-third probability, prompting a broader sell-off across risk-sensitive assets including stocks and precious metals as Treasury yields climbed and the dollar strengthened. The shift reversed the macro conditions that had supported Bitcoin's earlier rally, with the more restrictive policy environment generally unfavorable for speculative assets.